Accounting and Financial Analysis
Test Questions
Course Introduction
Accounting and Financial Analysis introduces students to the fundamental concepts and principles of accounting, focusing on how financial statements are prepared, analyzed, and interpreted for decision-making. The course covers topics such as the accounting cycle, financial reporting standards, ratio analysis, budgeting, and the use of financial information for managerial planning and control. Students will develop practical skills in reading and analyzing balance sheets, income statements, and cash flow statements, enabling them to assess an organization's financial health and make informed business decisions. The course integrates theoretical learning with real-world applications, preparing students for further study and professional roles in accounting and finance.
Recommended Textbook
Financial Accounting 3rd Edition by Robert Kemp
Available Study Resources on Quizplus 12 Chapters
1837 Verified Questions
1837 Flashcards
Source URL: https://quizplus.com/study-set/3302
Page 2
Chapter 1: Business, Accounting, and You
Available Study Resources on Quizplus for this Chatper
148 Verified Questions
148 Flashcards
Source URL: https://quizplus.com/quiz/65522
Sample Questions
Q1) Dividends are part of:
A)sales.
B)expenses.
C)Retained Earnings.
D)Assets.
Answer: C
Q2) J & J Metalworks buys a new machine for its shop on credit.The effect on the accounting equation is to:
A)increase Liabilities and increase Assets.
B)decrease Liabilities and increase Assets.
C)increase Assets and increase Stockholders' Equity.
D)increase Liabilities and decrease Stockholders' Equity.
Answer: A
Q3) A tax preparation business is primarily a:
A)merchandising operation.
B)service operation.
C)not-for-profit operation.
D)manufacturing operation.
Answer: B
To view all questions and flashcards with answers, click on the resource link above.
Page 3
Chapter 2: Analyzing and Recording Business Transactions
Available Study Resources on Quizplus for this Chatper
146 Verified Questions
146 Flashcards
Source URL: https://quizplus.com/quiz/65518
Sample Questions
Q1) The difference between total debits and total credits is known as the balance.
A)True
B)False
Answer: True
Q2) A trial balance is a list of the accounts and their balances taken from the general journal.
A)True
B)False
Answer: False
Q3) Which of the financial statements covers a period of time?
A)Income Statement
B)Balance sheet
C)Statement of Retained Earnings
D)Both A and C
Answer: D
Q4) Accounts that increase on the credit side are Assets,dividends and Expenses (ADE).
A)True
B)False Answer: False
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Adjusting and Closing Entries
Available Study Resources on Quizplus for this Chatper
149 Verified Questions
149 Flashcards
Source URL: https://quizplus.com/quiz/65517
Sample Questions
Q1) The entry to close the Dividend account includes:
A)a debit to Common Stock and a credit to Dividends.
B)a debit to Dividends and a credit to Retained Earnings.
C)a debit to Dividends and a credit to Common Stock.
D)a debit to Retained Earnings and a credit to Dividends.
Answer: D
Q2) Unearned Ticket Revenue is $5,034 on the unadjusted trial balance.During the period,$3,309 of that money has now been earned.The adjusted balance for Unearned Ticket Revenue is a:
A)$3,309 debit.
B)$3,309 credit.
C)$1,725 debit.
D)$1,725 credit.
Answer: D
Q3) The balance of Retained Earnings on the adjusted trial balance does not represent the final Retained Earnings balance on the Balance Sheet.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above.
Page 5
Chapter 4: Accounting for a Merchandising Business
Available Study Resources on Quizplus for this Chatper
149 Verified Questions
149 Flashcards
Source URL: https://quizplus.com/quiz/65516
Sample Questions
Q1) The account in which the revenue earned from the sale of merchandise is entered is:
A)Retained Earnings.
B)Sales.
C)Cash.
D)Inventory.
Q2) If a company has net sales of $134,000,gross profit of $48,000,and $14,000 net income.The gross profit percentage would be approximately 36%.
A)True
B)False
Q3) Net income is generally referred to as the company's "bottom line."
A)True
B)False
Q4) In the perpetual inventory system,inventory is constantly updated through the inventory tracking system.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Inventory
Available Study Resources on Quizplus for this Chatper
152 Verified Questions
152 Flashcards
Source URL: https://quizplus.com/quiz/65515
Sample Questions
Q1) The journal entry to record the purchase of $7,400 of inventory on account under the perpetual inventory system is:
A)debit Inventory,$7,400;credit Cash,$7,400.
B)debit Purchases,$7,400;credit Accounts Payable,$7,400.
C)debit Inventory,$7,400;credit Accounts Payable,$7,400.
D)debit Cost of Goods Sold,$7,400;credit Inventory,$7,400.
Q2) The LCM rule compares original cost to current replacement cost to determine the amount at which inventory should be valued.
A)True
B)False
Q3) If the ending inventory is overstated in Year 1,then the Cost of Goods Sold will be overstated in Year 2.
A)True
B)False
Q4) If the ending inventory is understated in Year 1,then the Gross Profit will be understated in Year 2.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: The Challenges of Accounting: Standards, internal Control,
audits, fraud, and Ethics
Available Study Resources on Quizplus for this Chatper
139 Verified Questions
139 Flashcards
Source URL: https://quizplus.com/quiz/65514
Sample Questions
Q1) Book value reports the past while market value focuses on the future.
A)True
B)False
Q2) Attempting to justify your actions is an example of:
A)realization.
B)perceived opportunity.
C)rationalization.
D)perceived pressure.
Q3) Cash register schemes are a form of:
A)employee embezzlement.
B)bribe.
C)fraudulent financial reporting.
D)management fraud.
Q4) Another name for an "except for" audit opinion is a(n):
A)disclaimer of opinion.
B)qualified opinion.
C)adverse opinion.
D)unqualified opinion.
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Cash and Receivables
Available Study Resources on Quizplus for this Chatper
166 Verified Questions
166 Flashcards
Source URL: https://quizplus.com/quiz/65513
Sample Questions
Q1) A retailer has 4% credit/debit card service fees deducted from the proceeds from each sale.The retailer has $1,200 in credit/debit card sales for the day.The journal entry to record these sales would be to:
A)debit Cash for $1,200 and credit Sales for $1,200.
B)debit Sales for $1,200 and credit Cash for $1,200.
C)debit Cash for $1,152,debit Service Fee Expense for $48;and credit Sales for $1,200.
D)debit Cash for $1,152 and credit Sales for $1,152.
Q2) Using a 360-day year,the maturity value of a 90-day note for $3,500 at 8% annual interest is:
A)$3,780.
B)$3,710.
C)$3,570.
D)$3,500.
Q3) A 135-day note issued on May 17 will mature on:
A)September 28.
B)September 29.
C)September 30.
D)October 1.
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Long-Term and Other Assets
Available Study Resources on Quizplus for this Chatper
169 Verified Questions
169 Flashcards
Source URL: https://quizplus.com/quiz/65512
Sample Questions
Q1) Long-term marketable securities,such as five-year held-to-maturity securities,would be listed last in the long-term assets portion of a company's Balance Sheet.
A)True
B)False
Q2) A company replaced an engine on a vehicle and debited the amount to Repairs and Maintenance expense,rather than debiting the Vehicle account.Which of the following would occur because of this error?
A)Repairs expense would be understated.
B)Net income would be overstated.
C)Assets would be overstated.
D)Assets would be understated.
Q3) Which of the following would be considered a natural resource?
A)Corn
B)Livestock
C)Timber
D)Wheat
Q4) Depreciation is based upon cost,useful life and salvage value.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Current Liabilities and Long-Term Debt
Available Study Resources on Quizplus for this Chatper
167 Verified Questions
167 Flashcards
Source URL: https://quizplus.com/quiz/65511
Sample Questions
Q1) Richard is paid a salary of $9,000.At the end of November,his cumulative gross earnings were $99,000.How much will his employer take out for the OASDI portion of social security for December?
A)$558.00
B)$688.50
C)$130.50
D)$483.60
Q2) Contingent liabilities represent actual-NOT potential-obligations.
A)True
B)False
Q3) The amount that a borrower must pay back to the bondholders on the maturity date is the:
A)principal.
B)interest.
C)stated value.
D)market value.
Q4) Unearned revenues are typically classified as current liabilities.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Corporations: Paid-In Capital and Retained Earnings
Available Study Resources on Quizplus for this Chatper
160 Verified Questions
160 Flashcards
Source URL: https://quizplus.com/quiz/65521
Sample Questions
Q1) Which of the following business types is largest by number?
A)Not-for-profits
B)Proprietorships and partnerships
C)Corporations
D)Government entities
Q2) S&C,Inc.has 400,000 shares of $10-par common stock outstanding.They have declared a 5% stock dividend.The current market price of the common stock is $18/share.The amount that will be credited to Paid-in Capital in Excess of Par Common Stock on the date of declaration is:
A)$560,000.
B)$160,000.
C)$200,000.
D)$360,000.
Q3) For most companies,preemptive rights are the exception,rather than the rule.
A)True
B)False
Q4) Dennis owns 2% of the total shares in a company;if the company issues a dividend he will receive 2% of the dividend.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: The Statement of Cash Flows
Available Study Resources on Quizplus for this Chatper
133 Verified Questions
133 Flashcards
Source URL: https://quizplus.com/quiz/65520
Sample Questions
Q1) A transaction involving the exchange of stock for equipment would be recorded as a(n):
A)operating activity.
B)investing activity.
C)financing activity.
D)noncash investing and financing activity.
Q2) Operating expenses other than depreciation for the year were $563,000.Accrued expenses decreased by $47,000.Cash payments for operating expenses to be reported on the cash flow statement using the direct method would be:
A)$47,000.
B)$516,000.
C)$563,000.
D)$610,000.
Q3) If $10,000 was generated from operations,$4,000 was used for investing activities and $6,000 was generated from financing activities,the cash balance must have increased by:
A)$6,000.
B)$8,000.
C)$12,000.
D)$20,000.
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Financial Statement Analysis
Available Study Resources on Quizplus for this Chatper
159 Verified Questions
159 Flashcards
Source URL: https://quizplus.com/quiz/65519
Sample Questions
Q1) Which analysis deals with the percentage of changes in certain items over a period of years?
A)Horizontal analysis
B)Vertical analysis
C)Incremental analysis
D)Trend analysis
Q2) If management wishes to evaluate the delinquency of charge customers,they could use the:
A)rate of return on total assets.
B)rate of return on equity.
C)Accounts Receivable turnover.
D)quick ratio.
Q3) If current assets were $100,000 in 2013 and $88,000 in 2014,what was the amount of increase or decrease in percentage terms from 2013 to 2014? (Round to the nearest percent. )
A)Increase of 14%
B)Decrease of 14%
C)Increase of 12%
D)Decrease of 12%
To view all questions and flashcards with answers, click on the resource link above.
Page 14